EPFO Sees Significant Growth in Membership and Contributions for 2023-24

New Delhi, November 10 - The Employees' Provident Fund Organisation (EPFO) has reported a 7.6% increase in its contributing members, rising from 6.85 crore in 2022-23 to 7.37 crore in 2023-24. This uptick, according to a Labour Ministry statement released on Sunday, reflects a robust expansion in employment and business establishments within India's organized sector.

The number of establishments contributing to the EPFO also grew by 6.6%, reaching 7.66 lakh this year from 7.18 lakh last year. This growth underscores the improving economic conditions and the enhancement of workers' living standards through formal employment.

Financial performance also showed improvement, with EPFO realizing a 55.4% increase in arrear dues, totaling Rs 5,268 crore compared to Rs 3,390 crore the previous year. Additionally, the number of claims settled by EPFO rose by 7.8%, from 4.13 crore to 4.45 crore.

The findings were part of the EPFO's Annual Report for 2023-24, which was reviewed during an Executive Committee meeting chaired by Sumita Dawra, Secretary (Labour & Employment). The committee recommended the report for adoption to the Central Board.

To streamline its operations, the EPFO's Executive Committee has approved the hiring of two Chartered Accountant firms to enhance the preparation of its Annual Financial Statements and automate financial processes. This initiative aims to ensure timely preparation of annual accounts and introduce modern practices into financial reporting.

In a compassionate move, the committee also reviewed the draft New Compassionate Appointment Policy, 2024, aimed at supporting the dependents of EPFO employees who passed away, particularly during the Covid-19 period.

Further discussions included various proposals on information technology, administrative enhancements, and financial strategies to bolster governance within EPFO. The committee praised EPFO's efforts in relaxing auto-settlement criteria for claims, making the process smoother for members.

The meeting also tackled IT system overhauls, setting timelines for improvements in software and hardware, and discussed centralizing pension payments to enhance efficiency.

These developments signal EPFO's commitment to transparency, efficiency, and member welfare, aligning with broader economic growth and stability in India.